Recent data from the HSBC Trade Confidence Index revealed that Singapore has achieved the highest jump in business confidence levels in Asia, which indicates strong optimism in trade growth over the next six months.
This is despite the increasing prices of raw materials, inflationary pressures and global uncertainty.
With an increase of eight points to 121 points, Singapore came in second globally, behind the Kingdom of Saudi Arabia, which registered an increase of 14 points.
The scores — based on questions about global economy, trade volume and others — range between zero and 200, with 200 representing the highest confidence level.
Local outlook on trade volume was strong and positive, with 86 percent of the 300 small and medium businesses (SMBs) polled anticipating trade volume to either remain at similar levels or grow.
Khuresh Faizullabhoy, HSBC’s Head of Trade and Supply Chain, attributed it to robust regional demand.
“The increased connectivity with and between emerging markets, and China in particular which is fuelling world trade, are providing ongoing opportunities for Singapore businesses and underpinning their confidence,” Mr. Faizullabhoy said.
While local outlook is generally positive, there are also concerns about certain hindrances to growing export and import businesses.
“Fluctuating exchange rates remain the top concern here,” said Mr Faizullabhoy, with approximately half of local respondents pointing it as the primary concern.
This is similar to the concerns of other SMBs in Asia, except in India, where 40 percent of those polled see no barriers to growth.
India bested the Asian charts with an index of 140, remaining steady from the previous survey. It was followed by Indonesia with 123 points.
Malaysia, which has a score of 97, is the only Asian trade sector with a negative confidence level.
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